The benefits of international trade to developing nations include the following except
Answer Details
The option that does not apply to the benefits of international trade to developing nations among those provided is "strains international trade relation". International trade has numerous benefits for developing nations, which include the following:
1. Encourages specialization in production: International trade allows developing nations to focus on producing goods and services that they have a comparative advantage in, such as natural resources or low-cost labor. This specialization leads to increased efficiency and productivity, which can result in higher economic growth and development.
2. Encourages healthy competition: International trade encourages healthy competition between nations, which drives innovation and technological advancements. Developing nations can learn from more developed nations and adopt best practices to improve their own production processes.
3. Enables nations to move from subsistence to mechanized economy: International trade provides access to capital, technology, and expertise that can help developing nations to modernize their economy and move away from subsistence farming or other traditional practices.
Therefore, the correct option is that international trade does not strain international trade relations, but rather it can promote cooperation and collaboration between nations, leading to increased economic growth and development.